As you are quite likely aware, there has been a formal announcement by President Trump that tariffs will be implemented for all goods arriving from the above three countries tomorrow February 2, 2025.  

Here is what we know at this moment. 

The first action to implement these tariffs is a publication in the Federal Register which will be our clarification of any parameters (commodities or all, actual rate and the authority under which the tariffs are collected) 

around these tariffs discussed by President Trump and the Press.  

We have read, all commodities (25% Canada and Mexico and 10% China) with some energy exceptions from Canada at a lower rate. 

The Federal Register notice with the specifics has not happened yet.

A few moments ago, an announcement was made indicating that the Mexico tariffs would be delayed by 1 month.  

We have also heard the news reports that the leaders of Canada and the US will be speaking this afternoon.

From an administrative perspective, there is programming work that must be done to implement the collection of these tariffs by both the government and Customs Brokers. 

Rates of duty are predicated on the arrival date into the United States, so having that programming done must occur before tariffs can be implemented. 

We understand that you need to know what is happening, we have been advised by Customs and Border Protection that they will inform us as soon as possible.  

Please find below an update based on the additional tariffs announced by President Trump:

Mexico:  Paused.  Announcement by Trump states 30 days. 

Canada:  Paused.  Announcement by Trump states 30 days.

·         China:  10% Additional duty will be assessed on nearly all products.  We have received implementation instructions.

• Products imported under a qualifying provision of Chapter 98 will be exempt from the additional duties.

• Exceptions to this rule will be products claimed under 9802.00.80; and subheadings 9802.00.40, 9802.00.50, and 9802.00.60.  For subheadings 9802.00.40, 9802.00.50, and 9802.00.60, the additional duties apply to the value of repairs, alterations, or processing performed (in China and Hong Kong), as described in the applicable subheading.  For heading 9802.00.80, the additional duties apply to the value of the article assembled abroad (in China and Hong Kong), less the cost or value of such products of the United States, as described.)

• Unlike the 301 tariffs currently in place, these duties will not be eligible for drawback.

• Products from China may no longer be entered under the ‘de minimis” rule and entered duty free. 

• Finally, goods which have been loaded onto a vessel or have departed on the final mode of transport to the United States prior to February 1, 2025 will be exempt from the additional duties.  We will carefully monitor departures to exempt your firm from these additional duties if your containers or shipments fall into this period. 

9802.00.80; and subheadings 9802.00.40, 9802.00.50, and 9802.00.60.  For subheadings 9802.00.40, 9802.00.50, and 9802.00.60, the additional duties apply to the value of repairs, alterations, or processing performed (in China and Hong Kong), as described in the applicable subheading.  For heading 9802.00.80, the additional duties apply to the value of the article assembled abroad (in China and Hong Kong), less the cost or value of such products of the United States, as described.